Latest updates

Brazil takes first steps to comply with IMO's 2020 sulphur emissions cap
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • 20 March 2019

In 2016 the International Maritime Organisation approved a reduction of the maximum amount of sulphur that can be contained in ships' fuel oil by January 2020. The National Agency of Petroleum, Natural Gas and Biofuels recently initiated a public hearing to obtain feedback on its proposal to amend Resolution 52/2010 in order to comply with the new requirements. Some parties expressed concerns about the changes, mainly due to the increase in costs in an already difficult economic environment.

Baltic and International Maritime Council adopts clauses to reduce sulphur emissions
  • Shipping & Transport
  • International
  • 06 February 2019

The Baltic and International Maritime Council recently published two new clauses which require time charterparties to reduce sulphur emissions. The clauses regulate the effects of Annex VI of the International Convention for the Prevention of Pollution from Ships, which stipulates that, from 1 January 2020, vessels will be able to consume only fuel with a sulphur content less than or equal to 0.5%.

ANP issues draft resolution regarding foreign trade activities
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • 08 October 2018

The National Agency of Petroleum, Natural Gas and Biofuels recently published Public Hearing and Public Consultation Notice 13/2018. The notice divulges a new draft resolution to control foreign trade activities relating to biofuels, petroleum and its by-products and natural gas by-products. The draft resolution also revamps the previous consent procedure for requests to import and export these products in view of the new resolution and provides for subsidies.

New draft law mandates additional passive safety equipment
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • 26 September 2018

Two members of Parliament recently presented a draft law that would mandate the installation of additional passive safety equipment for new boat engines and factory outlets. The draft law builds on previous legislation which sought to reduce the large number of serious accidents between vessels and the North Region's riverside inhabitants. Legislators await a congressional order to define the committees that will analyse the draft law and its procedural arrangements.

Brazil takes new steps towards reducing greenhouse gas emissions
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • 24 September 2018

Since 2017 Brazil has been developing an environmental public policy which supports a reduction in greenhouse gas emissions. For this purpose, the Ministry of Mines and Energy instituted the RenovaBio programme, a federal and state programme which seeks to identify and review all types of biofuel in the Brazilian energy sector based on certain criteria. Further, the National Council for Energy Policy is expected to implement a 10-year plan to ensure an 8.6% reduction in the petroleum market.

ANTAQ approves regulatory agenda for biennium 2018-2019
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • 19 September 2018

The National Agency for Waterway Transportation recently published Resolution 6,235, approving the agency's regulatory agenda for the 2018-2019 biennium. The regulatory agenda aims to inform the regulated sector and society at large about the agency's main regulatory issues for the biennium.

Arrest of vessels: Brazilian courts lack jurisdiction in foreign contractual dispute
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • 05 September 2018

A court recently confirmed the Brazilian courts' lack of jurisdiction to judge a claim brought by a foreign bunker supplier against a foreign shipowner and operator seeking arrest of the debtor's vessel while calling at a Brazilian port. The decision sets an important precedent and should help to prevent ungrounded arrest claims, as it clarifies that it is paramount to carefully analyse all of the risks involving an arrest lawsuit in Brazil before taking any action in order to avoid unnecessary exposure.

Decommissioning in Brazil – business opportunities and new regulations expected
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • 03 September 2018

The decommissioning of aging offshore units and related assets is a challenge for the oil and gas industry – not only in Brazil, but also worldwide. As such, the players involved in decommissioning projects – including the authorities, operators and subcontractors – should keep up to date with the relevant requirements and best practices in order to transform potential market crises into opportunities.

Court finds P&I club not directly and jointly liable for associate shipowners' debts
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • 22 August 2018

The Sixth Civil Chamber of the Rio de Janeiro State Court of Appeals recently decided that a protection and indemnity (P&I) club was not liable for an associate shipowner's debts. In its decision, the court distinguished the P&I club from insurers operating in the Brazilian insurance market. This decision is paramount because it creates an important court precedent regarding P&I clubs' liability for the damages caused to third parties by their associates.

Court finds P&I club not directly and jointly liable for associate shipowners' debts
Kincaid | Mendes Vianna Advogados
  • Insurance
  • Brazil
  • 21 August 2018

The Sixth Civil Chamber of the Rio de Janeiro State Court of Appeals recently decided that a protection and indemnity (P&I) club was not liable for an associate shipowner's debts. In its decision, the court distinguished the P&I club from insurers operating in the Brazilian insurance market. This decision is paramount because it creates an important court precedent regarding P&I clubs' liability for the damages caused to third parties by their associates.

Superior Court of Justice clarifies inapplicability of Consumer Protection Code to cargo claims
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • 11 July 2018

The 2nd Section of the Superior Court of Justice has unified the court's understanding of the applicable time bar for a subrogated insurer to pursue a claim for damages which occurred during maritime transport. This is a highly important precedent, as it has resolved a long-standing divergence between the Brazilian courts.

15th bid round boosts investments, while ANP softens local content rules
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • 14 May 2018

The National Petroleum Agency recently led the 15th bidding round in Rio de Janeiro, which reinforced international oil companies' (IOCs') interest in investing in Brazil. Eleven foreign and two national oil companies committed to paying approximately R8 billion in signature bonuses. The highest commitment was presented by the consortium between ExxonMobil, Petrobras and QPI. The IOCs have demonstrated their belief that the geological reserves in the Campos Basin are some of the most prolific on the planet.

ANP submits new rule for authorising performance of biofuel production
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • 16 April 2018

The Brazilian National Agency of Petroleum, Natural Gas and Biofuels recently published Public Consultation and Public Hearing Notice 4/2018, which establishes the requirements necessary to undertake the production of biofuel activity and the operation of producing facilities. The proposal unifies the biofuels regulatory framework (biodiesel, biomethane and ethanol) in order to simplify administrative procedures, foster investments in the sector and reduce costs resulting from the regulation.

IBAMA: new requirements for disposal of fluids, gravel and cement paste
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • 12 February 2018

In order to improve the definition of and conditions for the use and disposal of fluids, gravel and cement paste resulting from drilling and production activity in Brazil, the Brazilian Institute for the Environment and Renewable Natural Resources (IBAMA) recently published Normative Instruction 01/2018. In doing so, the IBAMA established new definitions and specific criteria that must be followed, subject to the penalties provided in the law.

New resolution regulates offshore and port support, cabotage and deep-sea navigation
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • 07 February 2018

The National Agency for Waterway Transportation recently published Normative Resolution 18, regulating the rights and duties of users, intermediary agents and companies operating in offshore and port support, cabotage and deep-sea navigation and establishing administrative infractions. The normative has ultimately introduced innovations into this field – for example, regarding the regulation of intermediary agents and refusals to provide maritime transport services.

Superior Court of Justice recognises validity of foreign ship mortgages
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • 29 November 2017

The Superior Court of Justice has reversed previous Sao Paulo State Court rulings and recognised the validity of foreign ship mortgages in Brazil. Respecting the acts of sovereignty of countries where vessels are registered, the court highlighted the economic importance of acknowledging ship mortgages of foreign states and emphasised that large vessels must be registered in their flag states and that these registrations have extraterritorial effects.

ANP proposes flexibility for local content rules in contracts signed after 2005
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • 23 October 2017

The Brazilian National Agency of Petroleum, Natural Gas and Biofuels recently published Notice of Public Consultation and Public Hearing 20 in order to collect input regarding the new rule which will increase the flexibility of the local content rules provided for in concession contracts entered into between the seventh and 13th bidding round for onerous assignment, as well as the first production sharing bidding round of the exploration of oil and natural gas blocks.

Improved regulatory and import rules attract new oil and gas investors
Kincaid | Mendes Vianna Advogados
  • Energy & Natural Resources
  • Brazil
  • 16 October 2017

The initial expectation from some market analysts with respect to the outcome of Brazil's 14th bidding round was conservative, with Brazil's political turmoil and the downturn in the oil and gas sector clearly inciting this uncertainty. However, it seems that the government's initiative to extend the special customs regime for the import of rigs, vessels and equipment until 2040, as well as its adjustment of the rules in relation to local content requirements, ensured the round's success.

Mandatory insurance and maritime accidents: law versus reality
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • 11 October 2017

Federal law provides that all vessels registered before Brazil's port captaincies must buy the mandatory insurance for personal injury caused by vessels or their cargo. However, such insurance has been discontinued due to a lack of insurers willing to underwrite the risks involved. Now, after a number of passenger fatalities in recent accidents, industry players and the government are being called on to ensure that policies are offered which soften the burden borne by victims and their families.

Ministry of Labour regulates ship demolition activities
Kincaid | Mendes Vianna Advogados
  • Shipping & Transport
  • Brazil
  • 04 October 2017

The Ministry of Labour recently published Ordinance 790, amending Regulatory Standard 34 on Working and Environmental Conditions in the Shipbuilding and Ship Repair Industry. The amendments also regulate ship demolition activities. According to the Ministry of Labour, this is because the Brazilian fleet is aging and thus the demand for ship demolition activities may increase.